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Hiring a tax preparer is an easy way to handle your tax preparation whether you are an individual or a business. However, you should always keep your eyes peeled for tax prep scams. While most Canadians use tax preparers without any problems, you are always at the risk of coming across a tax preparer who is unscrupulous.
Here are some tips on how you can avoid tax prep scams.
Researching on the tax preparer is your best chance of getting into a scam. What does this involve?
Once you select a tax preparer, you are still not out of the woods. You need to ascertain that your financial documents are safe on the tax preparer system. This includes:
Avoid Work From Home
Literally anyone can become a tax preparer. One does not have to have a background in accounting or such. This results in the industry containing people many people who work from home. Unless a personal and trusted acquaintance has recommended the person to you, avoid work from home tax preparers.
This is just a safe precaution that reduces the chances of you getting scammed.
Usage of Old Tax Laws
A favored trick used by old tax preparer scams is using old tax laws to dupe customers. They will pull out an arcane tax form for you to fill out.
If the tax preparer can’t write or speak good English, you should back away immediately. Tax preparers are required to go through a stringent course and exam that requires good English. Whether it is emails, formal documents, or conversations. If the grammar is bad, you are probably in touch with tax preparer scammer.
Not asking for Paperwork
The problem is that without all the required paperwork no tax preparer can conduct a complete job. If a tax preparer does not ask for your financial documents, then that is a big red flag.
Tax preparers are an effective and time efficient way to get take care of tax preparation, just don’t hire someone in a hurry otherwise you may land up in a scam.